Inspire Medical Systems, Inc. Announces Third Quarter 2025 Financial Results and Updates 2025 Outlook

Core Insights - Inspire Medical Systems reported strong financial results for Q3 2025, with a focus on the transition to the Inspire V system and positive global performance [3][4]. Recent Business Highlights - The company presented clinical evidence at industry meetings showing that the Inspire V system has enhanced performance compared to legacy systems [3]. - A successful device implant rate of 100% was reported in studies conducted in Singapore and the U.S. [3]. - The Inspire V system demonstrated a 20% reduction in surgical procedure time and significant reductions in disease severity [3]. - Over 75% of centers are ready to transition to the Inspire V system, indicating strong progress in the U.S. launch [3]. Third Quarter 2025 Financial Results - Revenue for Q3 2025 was $224.5 million, a 10% increase from $203.2 million in Q3 2024 [4]. - U.S. revenue was $214.4 million, up 9% year-over-year, while international revenue reached $10.1 million, a 37% increase [4]. - Gross margin improved to 85.8% from 84.1% in the prior year, attributed to higher sales volume and a favorable sales mix [5]. Operating Expenses and Income - Operating expenses rose to $183.1 million, a 17% increase from $156.5 million in Q3 2024, mainly due to marketing and corporate costs [6]. - Operating income decreased to $9.6 million from $14.3 million in the prior year [7]. Net Income and Earnings Per Share - Net income for Q3 2025 was $9.9 million, down from $18.5 million in Q3 2024 [8]. - Diluted net income per share was $0.34, compared to $0.60 in the prior year [8]. Full Year 2025 Guidance - The company maintains its revenue guidance for 2025 at $900 million to $910 million, reflecting a growth of 12% to 13% over 2024 [11]. - Gross margin guidance remains at 84% to 86%, with an increased diluted net income per share guidance of $0.90 to $1.00 [11]. Cash Position - As of September 30, 2025, cash, cash equivalents, and investments totaled $410.9 million, down from $516.5 million at the end of 2024 [10]. Share Repurchase - The company completed a $50 million share repurchase, indicating confidence in its financial position [9].